Food waste and costs go sky high as Dubai lifts the lockdown
Currently I am working out in Dubai where we are almost a fortnight into re-opening following a strict lockdown. We are beginning to see trends in the data emerging since. Our clients have also highlighted a number of business stresses affecting service, operational and food costs.
Writing this during Ramadan here in Dubai where I have been confined for the best part of two months, I am grateful to our many clients, colleagues and friends that we have been able to call on for mutual guidance and reciprocal support.
At Chefs Eye Tech, myself and the team are committed to supporting our clients in measuring their food waste as they begin switching on lights, stoves and ovens again… and we are proud of how quickly we have already helped them identify cost-impacting trends in food waste during production on site in the essential service sectors that have remained open throughout; namely oil refineries, hospitals and hotels where our systems have proved beneficial.
As our clients continue to come back on stream, we have identified nine trends in the data, and in conversations with our clients so far: we hope they help you to anticipate your challenges of getting operational again.
Nine trends where we have seen a real impact on costs are:
Style of service impacts disposable costs
The rise of ‘takeawaste’
Production and trim waste increases
Increase in home-packed lunches
Chefs working to ‘business as usual’ metrics
Purchasing cost volatility
Stretched-out service timings
Batch-cooking on the back burner
The ballooning cost of labour resource
• Style of service impacts disposable costs
The first and probably biggest shift we have seen in operational changes has been the switch from more buffet style service to pre-portioned food in takeaway boxes.
In Dubai all food has had to be portioned into disposable containers with disposable cutlery, so shortages in continued supply are anticipated.
We are seeing costs go sky high as many businesses have not built this and other new factors into their food cost calculations and consequently may be squeezed on margins if they do not adjust menu price to recoup the additional costs incurred.
• The rise of ‘takeawaste’
Plate waste is a key aspect in managing food waste, and several of our sites that are still able to measure their plate waste have seen an increase. But many sites have seen the emergence of a new phenomenon to them: ‘takeawaste’ - the leftovers in takeway food as a result of shifting from away buffet / self-service to pre-portioned meals. Generally we have seen patterns of waste arising here in UAE from starches; especially rice and vegetables.
Visibility of this type of ‘plate waste’ is the challenge for most sites since takeaway meals are now being sent out of the cafeteria, limiting the ability to monitor / measure the leftovers coming back. Without feedback, portion sizes may remain too large or side dishes left uneaten. And plastics that are soiled with leftover food cannot be recycled.
Due to this ‘takeawaste’, we are exploring ways we can guide chefs to gain effective feedback from customers to help them manage portion sizes and adapt dishes to reflect what customers want.. and more improtantly, don’t want. One key step in ensuring correct portion size is to have the correct takeaway container.. 100g of rice in a 400g container will look ‘mean’, but in a 200g container, will look ‘generous’.
Another interesting pattern that has emerged was a massive initial spike in food waste created by the complete switch in service style.
• Production and trim waste increases
Another interesting pattern that has emerged was a massive initial spike in food waste created by the complete switch in service style.
Our data showed all areas of waste affected, with large spikes in overproduction and trimmings from pre-lockdown levels - despite lower customer levels.
We know that buffet style service results in overproduction to meet client demands for full counters throughout the full service period.
However this was particularly interesting for me, because plated food should reduce over-production and it rose instead. Digging deeper into this issue, and with feedback from our clients, we found the increase was due to uncertainty over customer numbers.
So why the uncertainty?..
• Increase in home-packed lunches
One key factor in post-lockdown has been the rise in customers cooking their own food and bringing in packed lunches which results in uncertainty over customer numbers.
In theory, sites moving to a more ‘banqueting’ style of service should see wastage reduce, but poor forecasting of footfall; a lack of training in this style of service, as well as pressure from some clients has resulted in a jump in wastage which we are able to identify quickly.
• Chefs working to ‘business as usual’ metrics
Trim waste (of raw ingredients during cooking preparation) has seen an uplift too. This would suggest that more food is being produced as chefs pick up where they left off; working to pre-lockdown service level numbers.
The unprecedented reduction in customer numbers results in excess purchasing of ingredients and consequent over-production, ultimately going directly in the bin.
We have helped clients identify these trends quickly and change gear in terms of forecasting and menu engineering to bring that cost down.
• Purchasing cost volatility
One important factor to consider in relation to cost is the increase in global food prices and lack of certain products due to travel restrictions.
Talking to several suppliers there is a trend in restrictions in the availability of certain items and looks as is if in the short term they may need to be more of a switch to seasonal and local produce.
• Customer Level Volatility
Even though offices etc are reopening, the vast majority of people are still working from home on most days, only travelling into work 1-2 times per week.
Sites will have to have clear channels of communication with the Client to find the correct number of staff expected on site each day.
The uncertainty over customer levels has lead to large increases in ‘overproduction’ waste. To mitigate this, we also advise having more ‘grab and go’ and longer shelf-life items such as pre-packed sandwiches and whole fruit on display to help mitigate the wastage from freshly produced food.
• Stretched-out service timings
Most sites are now looking at extending service hours to facilitate a bigger window of office anttendance to reduce peak footfall. Multiple services are now required each day to mitigate the number of customers in the restaurant at all times.
On top of this, some sites are moving to 7-day-a-week operations, to stagger the number of staff on site. Our data is showing an increase ‘overproduction’ waste, where food is being batch-cooked and held for service, but without being sold or served due to reduced footfall.
Furthermore, sites that usually do one or two services are now doing three in a day. The rise in trim and production waste appears largely to be occurring due to overly broad range of meal types being prepared each day. To mitigate this, menu planning will have to combine brunch and grazing items into their menus to reduce the range, but extend the offer period of any given menu item.
• Batch-cooking on the back burner
As described above, the common method of batch-cooking has become slightly obsolete for the time being. Chefs will need to adapt to shorter menus of cook-to-order items until consistently sutainable cutomer numbers are restored.
It is worth noting that Coronavirus cannot be passed through food cooked safely or utensils washed and handled hygienically. However the current climate of fear and uncertainty means customers will migrate to wholesome, comfort-food dishes served in disposables.
• The ballooning cost of labour resource
One further issue we have seen that isn’t directly related to food costs, is the increase in staff costs due to longer services hours and increase in days of services. Staff are now required for more thorough cleaning both back-of-house and in customer service areas.
Also worth noting, is that any member of staff member who suspects they may have contracted Covid-19 will have to self isolate for at least two weeks, and therefore will require substituting on-site to ensure business continuity.
In summary, there is a real sense of optimism that the lifting of a lockdown brings.
That said, it is tempered with uncertainty and those ballooning costs as business works towards meet the challenges head on.
The only way to survive and thrive is to trim the fat in terms of costs: for us that means trimming the trimmings on food waste, disposable and general food production overheads.
Author: Daniel Truss | Director and Co-Founder, Chefs Eye Tech
